Study On Active Delisting Reasons Of Erzhong Heavy

In the western developed capital market, the listed company delisting is common way of capital operation. Active delisting reasons mainly include the price of the stock is undervalued, enterprise strategic adjustment, strengthen enterprise’ right of control and saving the relevant cost, and so on. By the end of December 31, 2014, there is no enterprise chooses active delisting except the acquisition and reorganization in China’s stock market.The delisting of China’s securities market is compulsory delisting because of sustained losses and major violations. It is difficult to become a listed company in China, there are many companies in order to better development are listed on the line. In 2014 securities regulatory commission released the new delisting system known as the most severe delist policy. So it is meaningful to study the active delisting enterprises.Select the Erzhong Heavy as the research object because the case is the first active delisting enterprises since the implementation of the new delisting system, it can provide reference significance. In addition, in this case Erzhong Heavy belongs to heavy machinery industry which is a basic industry of national economy and has significant effects on the national economy. It is necessary to study the problem of Erzhong Heavy’s business strategy which made it delisted.In this paper, the case study method. Select the Erzhong Heavy as the research object and uses the qualitative and quantitative analysis method to research the main problems. Firstly,introduce the background and reasons of the delisting, then compared Erzhong Heavy’s business strategy with the same industry enterprises to find out the mistakes on strategy.Thirdly, according to the Erzhong Heavy’ problem of management, using the Du Pont analysis method and Z-score model for further analysis of its financial problem. Last, come to the conclusions in fully understand the business and financial conditions, and concluded case enlightenment, from the corporate management recommendations, protection of the rights and interests of minority shareholders and the improvement of the delisting system.